Aurobindo Pharma (AUROPHARMA) Q3 25/26 earnings summary

Executive summary

• Focused on enhancing manufacturing, compliance, and automation, with strong cash inflow and improved net cash position as of March 2025.

• Q3FY26 revenue reached ₹8,646 crore, up 8.4% year-over-year, driven by strong Europe and stable US performance despite lower transient product sales.

• Standalone and consolidated unaudited financial results for Q3 and nine months ended December 31, 2025, were approved and reviewed without qualification by auditors.

• Strategic ramp-up of Pen G plant, positive government policy changes, and biosimilars expansion expected to boost domestic API manufacturing and future growth.

• Confident in sustaining growth momentum, supported by diversified operations, capacity expansion, and strategic acquisitions.

Financial highlights

• Net profit for the period was INR 910 crore, including a one-time labor code amendment cost of INR 65 crore.

• Revenue from operations grew 8.4% YoY to ₹8,646 crore in Q3FY26; gross profit margin improved by 129 bps YoY to 59.7%.

• Net cash inflow of $118 million during the quarter; net cash position improved to $251 million as of March 2025.

• R&D spend was ₹409 crore (4.7% of sales), focused on biosimilars and specialty products.

• Finance costs averaged 4.9% and declined by 21.7% YoY.

Outlook and guidance

• Expecting annualized Pen G production to exceed 10,000 metric tons over the next 12 months.

• EBITDA margin target set at 20%-21% for FY 2026, with strong earnings growth visibility.

• Strategic focus on expanding biosimilars portfolio, with multiple launches and regulatory filings planned through 2026.

• U.S. injectable business projected to maintain double-digit growth until FDA warning letter is lifted.

• Power purchase agreement with Garuda Renewables expected to reduce power costs and improve ESG profile.